SMM Zinc Price Forecast (Mar.25-Mar.29)

SHANGHAI, Mar. 25 (SMM) – A substitute plan for the Cyprus bailout was studied by the EU members last Friday. If the latest plan is not acceptable, the Cyprus debt issue will continue to dominate markets in the coming week. Major economic data from Europe and US will also be released in the coming week and positive US GDP data due out this coming Thursday is expected to boost zinc prices. LME zinc prices should move between USD 1,900-1,965/mt in the coming week, and SHFE 1306 zinc contract prices will move between RMB 14,800-15,100/mt. Domestic downstream market will remain sluggish, however, causing spot discounts of RMB 170-220/mt against SHFE 1306 zinc contract prices.